Oak Creek agrees to smaller financing plan for hotel

The Oak Creek Common Council has agreed to provide $2.75 million to help finance a proposed 107-room hotel, and a 1,830-space parking lot aimed at travelers flying in and out of Mitchell International Airport.

The Four Points Sheraton Hotel is proposed for the southeast corner of S. Howell and E. College avenues by developer Greg Trapani, whose family operates Trapani Construction Co., of Arlington Heights, Ill. The hotel's property taxes would pay back the city's funds through a tax incremental financing district.

The council granted preliminary approval in May 2011 to help finance the $27.2 million development with $4.5 million. But no work has occurred yet on the project, and no city funds have been spent.

In June, I reported that a foreclosure suit, filed in Milwaukee County Circuit Court by Morton Community Bank, of Morton, Ill., is targeting the hotel site. The suit said two investment groups, Trapani Family Properties LLC and Syner G Oak Creek LLC, owe $3.96 million from three defaulted loans.

Trapani and Syner G have since filed a response to the suit, which is still pending, according to online court records.

The Common Council this week approved the smaller financing plan for the proposed hotel after the developer obtained additional private financing, and took other measures to reduce the city's risk, according to an Oak CreekNow.com article by reporter Michael Runyon.

Commercial Real Estate News

Two packaging companies, both owned by Quad/Graphics Inc., are planning to expand their neighboring facilities in Franklin, according to information filed with the city.

Transpak Corp. and Proteus Packaging Corp. both operate on World Packaging Circle, a cul-de-sac within Franklin Business Park, south of W. Ryan Road and west of S. Oakwood Park Drive. Both companies moved to Franklin from Milwaukee in 2007, and were sold to Quad in 2013.

Transpak's services include export, domestic and military packaging, as well as product distribution. It operates a 300,000-square-foot facility, according to the company's website.